Transocean Inc. Provides Update on Discoverer Enterprise
HOUSTON--(BUSINESS WIRE)--June 16, 2003--Transocean Inc.(NYSE:RIG) today announced the deepwater drillship DiscovererEnterprise remains on location in the U.S. Gulf of Mexico at zerodayrate while continuing the investigation with respect to the riserseparation which occurred on May 21, 2003. A significant portion ofthe riser string has been recovered and preparations are being made torecommence operations after completing some riser component treatmentbased on the results of the investigation to date. The companybelieves that this work will be completed within the next two to threeweeks. Seven other Transocean deepwater drillships use the same typeof riser. As a precautionary measure, the company plans to schedulesome downtime on the seven other drillships to inspect the riser, butdoes not believe such downtime will be significant. Once theinvestigation and inspections are complete, the company will determinewhat modifications, if any, will be required. The eight Transoceandrillships that use this type of riser are the three Enterprise-classrigs (Discoverer Enterprise, Discoverer Sprit, Discoverer Deep Seas),the four Pathfinder-class rigs (Deepwater Discovery, DeepwaterFrontier, Deepwater Millennium, Deepwater Pathfinder) and theDeepwater Expedition.
With respect to the second quarter, the company had previouslystated that it expected deterioration in its financial results andidentified a number of factors that were likely to lead to suchdecline in results. In light of the incident on the DiscovererEnterprise, unexpected downtime on several other rigs and anapproximate $10 million loss of revenue due to the Nigeria laborstrike, the company now expects revenues for the quarter ended June30, 2003, to be at or slightly below first quarter 2003 revenuelevels.
Statements regarding resumption of operations by the DiscovererEnterprise, timing and extent of any modifications, anticipateddowntime and costs, revenues for the quarter ended June 30, 2003, aswell as any other statements that are not historical facts in thisrelease are forward-looking statements that involve certain risks,uncertainties and assumptions. These include but are not limited tooperating hazards and delays, risks associated with internationaloperations, results of investigations regarding riser, actions bycustomers and other third parties, the future price of oil and gas andother factors detailed in the company's most recent Form 10-K andother filings with the Securities and Exchange Commission. Should oneor more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may varymaterially from those indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with more than 170 full or partially owned and managedmobile offshore drilling units, inland drilling barges and otherassets utilized in the support of offshore drilling activitiesworldwide. The company's mobile offshore drilling fleet is consideredone of the most modern and versatile in the world with 13fifth-generation semisubmersibles and drillships, 15 other deepwatersemisubmersibles and drillships, 32 mid-water semisubmersibles anddrillships and 55 jackup drilling rigs. Transocean Inc. specializes intechnically demanding segments of the offshore drilling business,including industry-leading positions in deepwater and harshenvironment drilling services. With a current equity marketcapitalization in excess of $7 billion, the company's ordinary sharesare traded on the New York Stock Exchange under the symbol \"RIG\".
CONTACT: Transocean, Inc., Houston Analyst Relations: Jeffrey L. Chastain, 713/232-7551 or Media Relations: Guy A. Cantwell, 713/232-7647 SOURCE: Transocean, Inc.